NNPC to Grow Nigerian Content to 70%

27 Nov 2012

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Mr. Andrew Yakubu, GMD, NNPC

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The Nigerian National Petroleum Corporation (NNPC) has pledged to partner the Nigerian Content Development and Monitoring Board (NCDMB) to grow Nigerian Content in the oil and gas industry to the 70 per cent target set by the Federal Government, especially in the complex deep offshore.

The Group Managing Director of NNPC, Mr. Andrew Yakubu, made this commitment at the recent Practical Nigerian Content Conference held in Yenagoa, Bayelsa State.

Citing the recent Usan deep water field development project executed by Total, Yakubu stated that the participation of Nigerian companies in the industry, especially in the upstream had substantially increased from a merger 10 per cent before the enactment of the law to more than 30 per cent.

The GMD listed other projects with high Nigerian Content value to include the Utorogun gas expansion project; OB3 Pipeline Project, Escravos-Lagos Pipeline Phase Two, as well as the Aba Depot and Okirika Jetty rehabilitation project.

He said the windows of opportunities to grow Nigerian Content existed in the upstream, midstream and downstream segments of the oil and gas value chain.

Yakubu also advised Nigerians to set up medium sized companies in both exploration and production in areas like well services engineering, measurement, mud and logging engineering services.

According to him, the monetisation of the country’s natural gas endowments presented other opportunities for growing Nigerian Content, just like the revamping and rehabilitation of existing downstream infrastructure.

He further stated that the enactment of the Nigerian Content by President Goodluck Jonathan had positively impacted on the sector and expressed hope that the passage of the Petroleum Industry Bill (PIB) would further enhance benefits from the Nigerian Content Act.

In his keynote address, the Executive Secretary of NCDMB, Mr. Ernest Nwapa, stated that for Nigeria to be a great oil producing nation, stakeholders must make conscious efforts to develop a robust supply chain which will includes facilities, own assets and stimulate local manufacturing.

According to him, there was a compelling need to create legacies from mega industry projects so that long after contracts have been concluded, Nigerians can be productively engaged and use capacities developed to service other sectors of the economy.

He further canvassed the adoption of a developmental model which focuses on creating in-country value and building a viable industry as against just extracting and selling crude oil to earn revenue for government.

Nwapa cautioned that any slippage in the implementation of the Nigerian Content Act would reverse the gains already recorded like the patronage of the SCC Pipe Mill and lead to disuse of facilities and loss of jobs.

Tags: Business, Nigeria, Featured, Andrew Yakubu, NNPC

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